$182K in VELVET Transferred to Private Wallets as Accumulation Trend Strengthens Amid Price Stability

Velvet Capital [$VELVET], a DeFi portfolio management and cross-chain routing protocol, has gained approximately 10% over the past 24 hours, tracking the broader market's upward trend. The advance comes against the backdrop of a steeper 30-day pullback, during which the asset declined 18%.

Despite the recent bounce, downside risks remain for traders holding long positions. Whether the recovery develops into sustained upside or represents a temporary pause within a wider downtrend remains an open question.

Deleveraging Phase Shapes Recent Price Action

Data indicates that the recent surge in $VELVET was partly driven by a flush-out of over-leveraged positions. According to CoinGlass, perpetual market capital flows show sustained net outflows over the past 30 days, with net sales reaching $25.38 million. That deleveraging cycle corresponded with the token's 18% drop over the same period. In derivatives markets, such deleveraging events occur when over-leveraged long or short positions are forcibly liquidated, often amplifying price swings before conditions stabilize.

Over the most recent 24 hours, net sales pushed approximately $256,000 out of the market as sell-side flows remained dominant. This pattern is consistent with a deleveraging phase, in which overexposed positions are reduced and market conditions normalize.

However, the Funding Rate has remained positive throughout the flush, suggesting that traders maintain a bullish outlook for a longer-term rally. The Funding Rate, a recurring fee exchanged between long and short perpetual futures traders, reflects the cost of maintaining leveraged positions and serves as a gauge of directional bias in derivatives markets. $VELVET has posted a year-to-date gain of approximately 200%.

Spot Market Shows Growing Accumulation

Accumulation is also evident in the spot market. Netflow — the difference between inflows (sellers moving coins onto exchanges) and outflows (buyers pulling coins into private wallets) — currently reflects net outflow dominance. Exchange outflows are commonly read as a signal that holders intend to custody assets independently, reducing immediate sell pressure on order books.

Over the past 24 hours, approximately $182,000 worth of $VELVET was moved into private wallets, likely for long-term holding, with netflow sitting at around $22,000. A comparable pattern emerged at the weekly open, when trading closed with heavier outflows and $529,000 worth of $VELVET left exchanges.

Community sentiment, measured on a scale of -10 to 10, places $VELVET at approximately 5.77, reflecting a bullish outlook among market participants.

Liquidation Clusters Highlight Downside Risk

The liquidation heatmap on the two-week chart reveals a dense cluster below $VELVET's current price. The zone between $3.6 and $3.8 stands out as a high-density region. Such clusters tend to act as price magnets, with values frequently moving toward these levels before stabilizing. Liquidation heatmaps aggregate the notional value of leveraged positions that would be liquidated at various price levels, visualizing where forced selling is most likely to cascade if price reaches those zones.

This data suggests $VELVET could test the $3.6–$3.8 range before any potential rebound. Spot accumulation totaling $182,000 moved to private storage and a positive Funding Rate indicate sustained bullish positioning, while the $25.38 million perpetual net sales flush over 30 days and concentrated liquidation clusters between $3.6 and $3.8 continue to present material downside risk.